I've got the 208 from my 84' Chevy setting on the bench right now. My problem is that it wants to hang up in 2wd. Once unstuck, it shifts through all gears fine but as soon as it's returned to 2wd and the output shaft is turned only the slightest manually, it will hang up again. I've got to literally shake the heck out of the linkage and arm to get it "unstuck". It hasn't been locked into four wheel drive in about 14 years.(show truck) Maybe that explains some of it.LOL. Any insight would be appreciated.

My 208 will get stuck in 4lo if the driveshafts bind up, but yours does it if you turn it by hand on the bench?

Yes. I had the same problem when it was in the truck. I could literally stand up and pull back on the shifter not disengage it from 2wd. Thought maybe the linkage was a problem and I did have a leaky seal, so I pulled it and threw it on the bench to see how it would react with the shifter out of the way. Same problem. I hate to put it back in and crawl underneath with a hammer everytime I need 4wd. LOL